Sales Fall at Mattel - TheStreet

Sales Fall at Mattel

The company plans to boost marketing efforts in the second half of the year.
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(MAT) - Get Report

said its second-quarter profit rose only slightly as weak demand took a toll on sales, but the results, excluding items, matched analysts' estimates.

The toymaker earned $20.9 million, or 5 cents a share, in the quarter compared with $19.6 million, or 4 cents a share, a year ago. Excluding charges, the company earned $30.9 million, or 7 cents a share, compared with $29.6 million, or 7 cents a share, in the prior-year quarter. Mattel said operating income was down 6% at $54.8 million.

Total sales fell 4% to $769 million. Domestic gross sales declined 15%, but international sales rose 11%. In local currencies, however, they were up less than 1%.

The company's Mattel Brands business unit saw worldwide gross sales fall 9% to $494.7 million, with the Barbie brand down 8% and Hot Wheels, Matchbox and Tyco R/C brands posting a total decrease of 20%.

"As expected, second-quarter sales were weak driven by the combination of declining retail inventories and market-share losses," said Robert A. Eckert, chief executive. "To reinvigorate sales in the all-important second half, we are bolstering our marketing and promotional programs surrounding our core brands, as well as introducing exciting new brands."

Shares of Mattel were down 13 cents to $19.72 on the

New York Stock Exchange